With the weekend and the snow, I haven’t blogged about the advertising tax (aka: Amazon or affiliate tax) for a few days, but things have been changing quite dynamic lately, and I do have news to report:
Alarming News:
The Governor of Oklahoma — the state that is facing a $1.3 billion 2010 budget deficit — is looking “to collect sales tax on Internet, telephone and mail order sales”. There is no bill yet, but Oklahoma-based affiliates should definitely keep the finger on the pulse of the situation. Read more on the topic in the recent “Affiliates, Oklahoma Not Okay” post by Melanie Seery.
Good News:
After all of the hard work by Colorado-based affiliates [read my previous posts on the topic here], on Monday (February 8, 2010) the House Bill 1193 has been published in its amended version which excludes affiliate-referred sales from the scope of the tax law. Read more about it in yesterday’s “Death of the Colorado Advertising Tax” post by Shawn Collins.
Important News:
I’ve been informed earlier today that the hearing on Virginia‘s version of the “affiliate tax” bill [original news here | current name: Senate Bill 660] is scheduled to happen tomorrow, on Wednesday, February 10, 2010 at 9:00 am. Bad timing with the forecasted new snow storm, and the roads still being terrible after the one we’ve had over the weekend. But if you are a Virginia-based affiliate, and can make it, please contact Adam Viener about going to this hearing; and contact your senators a.s.a.p. too.
“by an independent contractor” – who works “for a commission or other consideration” describes every media outlet that carries advertising, including TV, radio, or newspaper. Basically they are saying any business that trades in that will pay sales/use taxes. If I log onto GEICO and buy insurance because of a newspaper or radio ad, I am now a qualifying internet sale according to the language. Even if they do find some way of keeping it separate, should every affiliate program shut down in these states (which is likely), do the states (and the federal government) realize how much they will miss in income taxes from these affiliates? Don’t they realize these affiliates are probably spending that affiliate money in their home towns supporting the local economy AND paying state sales taxes? What about all of the disabled people I know that are surviving from internet income, many of who were on state assistance before the internet changed their lives. I am just across the Virginia line and have spent thousands of affiliate dollars in Virginia. Let me assure you that if Virginia taxes shut down affiliate programs there, not one penny of my affiliate money will be spent there.